Good small caps 'becoming scarce'

Catherine Stanley, manager of the F&C UK Smaller Companies fund, said: “The issue we are finding is more at the stock specific level rather than the headline level. "Among the more mainstream well established smaller companies which are ideally suited as core holdings, value is proving elusive. We are therefore looking further afield for opportunities, with the strongest performers in the market being special situations and recovery type plays as well as IPOs.” Stanley pointed to the example in her fund of digital TV technology group Pace, which had been a poor performer but has turne...